Part C: Dividend Policy

• Use the information provided to discuss the dividend policy of the four listed firms over the past four years.

Format Table

2018201720162015Smith Company, Inc.Dividend$2.00$2.00$2.00$2.00Net Income$3,978,000$4,931,000$5,220,000$5,652,000Competitor 1Dividend$3.25$0.75$1.20$1.00Net Income$6,111,000$5,408,000$5,576,000$5,456,000Competitor 2Dividend$2.50$2.50$2.00$1.00Net Income$5,547,000$5,160,000$4,823,000$4,637,000Competitor 3Dividend$1.25$0.55$0.55$0.55Net Income$4,543,000$3,786,000$3,711,000$3,657,000